Planning the scheme and preparing the Outline Business Case (OBC)
This is the detailed planning phase for the spending proposal which results in the production of the Outline Business Case (OBC).
The purpose of this stage is to revisit the shortlist developed in the SOC, undertaking more detailed economic analysis, considering the costs, benefits and risks of the shortlisted proposal in the round by calculating a Net Present Value (NPV) or Net Present Cost (NPC) for each option, identifying a “preferred option” which demonstrates value for money by optimising the balance of cost, risk and benefit.
The OBC also sets out the likely ‘Deal’; demonstrates affordability; and details the supporting procurement strategy, together with management arrangements for the successful delivery of the proposal.
This stage aligns with the Gateway Review point 2 (delivery strategy) and comprises of the following business case development framework activities:
Determining potential Value for Money
Preparing for the potential deal
Ascertaining affordability and funding requirement
Planning for successful delivery
The OBC summarises the results so far and sets out the facts seeking formal approval to proceed to a formal Procurement Phase.
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